Prepaid Credit Cards Are Not New

Prepaid credit cards are not new to the financial sector in Ireland, but they are being used in a different way than the past. In fact several individuals are starting to find there are reasons to have prepaid credit cards. The sector using the cards the most are students. Students who are over the age of 18 are able to get prepaid credit cards. There are several benefits to having the cards, which could relate to the surge in acceptance by consumers.

• Prepaid credit cards for consumers don’t have interest rates. Instead there is a start up fee, monthly fee, transaction fee, and a reload fee. The start up fee and monthly fee are not found on all prepaid cards. There are some deals offering a waiver of these fees. Those are the deals to look for and compare. The fees are usually a Euro to two per transaction. The reload fee is normally 4 to 5 Euros.
• Students have found the prepaid cards to be better because of the lack of interest and the benefits of the credit reporting. The cards will report to credit bureaus, which helps establish credit for the younger generations in a positive light.
• Students are also only going to be able to use the card if it has money on it. They are in effect debit cards with the benefit of reporting to the credit agencies. If the account is empty the card cannot be used. It helps the students be more responsible in how they pay for items, especially if the account is funded by the parents.
• Prepaid cards can be used at university for tuition, books, and other expenses. It is an easier method than having money wired or sent via mail to the student.
• This leads to the convenience of the cards.

Prepaid cards are not all glory though. The fees mentioned above can mean spending a little more for the use. For anyone interested in prepaid credit cards the benefits should be considered and compared against the cons.

In some cases the cards are the only credit cards available to poor or bad credit consumers. These consumers benefit the most from re-establishing their credit in a good light. To establish credit with these cards doesn’t take long until a regular card can be obtained to get the credit scores up even more.

The surge credit card companies are seeing in these cards is overwhelming. They expect more consumers to start using the cards over the regular credit cards to help avoid major debt issues. The prepaid cards can even be used for emergency purposes over the other type of credit cards. By using it as a sort of savings account the consumer can store money in a fashion that is easier to use if their car needs repairs or other issues arise.

Experts are encouraging the use of this type of credit over the other credit cards for those with financial difficulties or a spending habit.

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This entry was posted on Wednesday, September 3rd, 2008 at 2:44 pm and is filed under Types of Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.